Data rooms aid in speeding the due diligence process during M&A and capital raising, simplify business transactions, and protect sensitive information. Data rooms specifically designed for data are more secure than standard tools for sharing files, and can be customized to meet specific business needs. Some companies believe that they can save money by using they make use of free virtual data rooms instead. This is a false assumption, since the free data rooms are more prone to theft and privacy breaches. They can be expensive or impossible to recover from.
Choose a vendor that offers advanced features and a price-effective package to avoid costly mistakes. A good VDR for instance, includes an automatic index of files, and dynamic watermarks that add the recipient’s email address in real-time on the document to discourage screenshots. It also has advanced expiry options, as well as DRM to stop unauthorized printing and sharing. It should also include an adjustable portal for clients and partners, a client/partner portal and a simple but user-friendly interface that is equally clear for the CFO and entry-level accountant.
A quality VDR should be compatible with a variety of operating systems and mobile devices. It should also come with ample reporting capabilities that transform activity audit logs in to useful reports. It should also offer visual analytics that can simplify and enhance due diligence and M&A processes. It will also allow users to set access permissions that are appropriate to each user’s role.